TCFD Pillar MUST’s Approach Location in SR Risk Management MUST's ERM framework identifies, prioritises, and mitigates environmental risks, including climate-related risks and opportunities. This framework is designed to identify the climate-related risks that could significantly impact our operations. The Board oversees risk governance across the REIT, ensuring robust risk management and internal control systems. This includes developing an overall risk strategy based on risk appetite, identification, measurement, assessment, monitoring, reporting, control, and mitigation. The ARC supports the Board in risk management oversight, including climate risks, delegating through a governance framework centred on the three lines of defence model. In 2020, a portfolio risk study was conducted by a third-party tool using both current and forward-looking risk scenarios to evaluate climate-related risks, including regulatory risks, to determine our portfolio’s exposure to climate-related transition risks. The study identified risks and associated business implications from future climate impacts and assessed current and potential preparedness strategies to address climate risks. The results of the assessment were informed by and presented back to senior leadership and used to inform internal processes. In 2023, our Asset Manager completed a climate scenario analysis for its global portfolio, which included MUST's properties. The forward-looking climate scenario analysis was conducted by a third-party to understand how the identified physical risks could impact future operations. In line with the Asset Manager's Real Estate Climate-related Financial Disclosure 2023 report, the analysis was conducted based on science and historical data and considers the climate scenarios of IEA NZE, RCP 2.6, RCP 6.0, and RCP 8.5 projected between 2030 and 2100. MUST aligns with the Asset Manager’s definition of short-, medium- and long-term horizons for climaterelated issues with short-term referring to 1 to 5 years, medium-term referring to 5 to 10 years and long-term referring to 10+ years. We regularly assess and analyse our portfolio’s exposure to climate-related risks, which allows us to identify the risk of future climate change using projections of future risk and IPCC scenarios. In addition to identifying climate-related risks, the studies also enabled us to identify climate-related opportunities, thereby assisting us in planning strategies to strengthen the climate resilience of our properties. The Manager is exploring the application of a scenario-based financial approach for assessing climate-related risks and opportunities. Page 78 Metrics and Targets We are committed to reducing our Scope 1 and 2 GHG emissions by 38.0% by 2035, and 80.0% by 2050. These targets are developed in line with the CRREM sciencebased decarbonisation pathways, which are aligned with the Paris Climate Goals of limiting global temperature rise to 2.0°C, with the ambition towards 1.5°C. We have also a target to achieve 100.0% green-certified properties by NLA by 2030. Pages 76 to 77, 82 and 84 ANNUAL REPORT 2024 | 111
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